By James Mathew
Attractive discounts and flexible payment options by developers and the recent plunge in rupee exchange value against major currencies are seen as major factors driving the current surge
India’s real estate sector is witnessing a sudden uptick in demand from non-resident Indians (NRIs) mainly based in the Middle East, with many developers and leading property consultants reporting more sales during the first half of this month than the sales registered in the entire month of June.
“We have registered more sales in the first 15 days of July, than the entire month of June,” Shajai Jacob, CEO-GCC of leading Indian property consultancy firm Anarock, told Arabian Business.
Many industry officials, including senior executives at DLF Ltd, one of India’s leading real estate company, and JLL India, the Indian arm of the international property consultancy, also confirmed the latest rush among NRIs to invest in Indian realty sector, especially those based in the Middle East.
Jacob said the increase in sales of late is due to market sentiments in GCC stabilising, and the easing of lockdown measures.
NRIs are also taking advantage of attractive discounts and flexible payment options by developers and the recent plunge in rupee exchange value against major currencies, according to property industry executives.
Discounts in the residential property segment are said to be 5-10 percent currently, while the rupee is currently traded in the range of 75-76 against the US dollar, almost 9 percent down from that in the early months of 2020.
“Of late, many of our projects, especially in the mid-segment have seen an uptick in both enquiries as also sales from NRIs, mostly from the Middle East region,” the spokesperson of DLF told Arabian Business.
Indian property portal NoBroker has said its data indicated that 65 percent of consumers believe that it is the best time to buy a property as prices are low and many developers are offering attractive discounts.
Officials at international property consultancy JLL India, however, said the current surge in NRI interest in the Indian real estate is more by way of enquiries, and these are expected to be converted into actual sales over the next few months.
“For enquiries to be converted into sales, physical inspection of projects is necessary and with mobility still restricted, especially in major cities such as Mumbai and Bangalore, it is taking time,” Samantak Das, Chief Economist & Research Head at JLL India, told Arabian Business.
“Our teams across major cities are reporting increased buying interest and enquiries from NRIs of late,” he added.